NEWS

E-Levy Shutdown: 17,000 MoMo Businesses Collapse

E-Levy Forced 17,000 MoMo Businesses to Shut Down – MoMo Agents Association

According to the Mobile Money (MoMo) Agents Association of Ghana, after the Akufo-Addo administration implemented the electronic transaction levy (E-Levy), about 17,000 mobile money companies went out of business.

Numerous MoMo agents were compelled to close their operations as a result of disproportionate tax deductions on transactions, according to an internal survey carried out by the organization. These deductions rendered operations unsustainable because they applied to both transactions between banks and clients as well as between agents.

The association’s general secretary, Evans Otumfuo, clarified that the high taxes drastically decreased MoMo agents’ operational capital, driving many of them out of business. He emphasized that by deterring transactions and lowering profitability, the fee had a detrimental effect on the mobile money industry.

Speaking in an interview with Joy News, Mr. Otumfuo stated, “E-Levy has been counterproductive to us; it has negatively affected our businesses. From our survey, we discovered that over 17,000 MoMo agents have shut down their businesses due to the levy. Agents were subjected to multiple levy deductions, which severely drained our working capital. This was not in the interest of our business.”

The association has expressed its strong support for the new government’s decision to scrap the E-Levy, describing it as a much-needed relief for MoMo operators. Mr. Otumfuo added, “We received the news of the E-Levy cancellation with great relief. We now look forward to its full implementation to restore and grow our businesses.”

The impact of the E-Levy on Ghana’s mobile money sector has been a topic of debate since its introduction. With the planned removal of the levy, many MoMo agents are hopeful for a revival of their businesses, improved financial transactions, and a boost in digital payment adoption across the country.

RECOMMENDED ARTICLES

USEFUL LINKS

Source: CITINEWS